Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A) A call option gives the owner the right to buy the asset.
• B) A put option gives the owner the right to sell the asset.
• C) A financial options contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date.
• D) A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.

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Definitions:

Opportunity Cost

The foregone benefit that could have been enjoyed if an alternative choice had been made.

Factors Of Production

The resources used in the production process, including land, labor, capital, and entrepreneurship.

Available Technology

The current state of technological advances and machinery available to businesses for production purposes.